In 2020, global steel production reached 1.829 billion tonnes, which is 0.9% below the 2019 result. China accounted for 57.6% of the total steel output, the country's contribution to the global steel output increased steadily since April 2020, November being the only exception, according to issue 1411 of AK&M Information Agency's "RUSSIAN INDUSTRIES: PRODUCTION, FINANCE, SECURITIES. Ferrous and Non-ferrous Metallurgy" monthly paper dated February 24, 2021.
Of special note is a significant increase in steelmaking in Russia, outstripping the U.S. in the steel output ranking, and in Turkey, which outstripped Germany. A total of 160.858 million tonnes of steel were produced worldwide in the last month of the year (+5.8% YoY, +1.6% against November 2020).
Russia increased steel production by 2.6% YoY to 73.4 million tonnes in 2020, rising to the fourth position in the ranking of steel producers (according to the WSA). The steel output decreased in 2020 in the United States (-17.1% to 72.69 million tonnes), in Japan (-16.2%), in South Korea (-6%), and in India (-10.6%). At the same time, China increased production by 5.2%, Turkey by 6%, Iran by 13.4%.
In December 2020, world prices of most types of rolled products skyrocketed to reach new record highs. The growth went on in January. Semi-finished products which saw the highest growth in December advanced in price slower. The average slab price increased by 15.8% to $748.1 per tonne (as of January 22), steel blanks by 6.6% to $616.6 per tonne. Flat rolled products rose in price more notably in January, while structural rolled steel elements grew in price at a weaker pace.
The spot price of iron ore with a Fe content of 63.5% cost $171 per tonne on the Dalian Commodity Exchange on February 19, hitting a 10-year high. According to CISA estimates, fundamental indicators of the Chinese iron ore market should improve this year, although demand may fall given a decline in steel production while supply may grow driven by expansion of capacities and a gradual production recovery from the negative impact of COVID-19. However, in the long term, analysts forecast a decline in iron ore prices.
The average price of copper was $7,975.1 per tonne in January 2021 (+2.7% versus December 2020). On February 22, copper cost $9,294 per tonne on the Comex Exchange, exceeding the $9,000 per tonne mark for the first time since September 2011. It should be noted that demand for copper is considered to be a "tell" for the state of the global economy, its long-term growth indicating traders' optimism.
An in-depth review of the trends and performance results of the ferrous and non-ferrous metallurgy market in 2020 is provided in issue 1411 of AK&M Information Agency's "RUSSIAN INDUSTRIES: PRODUCTION, FINANCE, SECURITIES. Ferrous and Non-ferrous Metallurgy" monthly paper.
